DoorDash, Inc. Class A Common Stock (DASH)

Short-term

Turnover ratios

The analysis of DoorDash, Inc. Class A Common Stock activity ratios reveals several notable trends over the specified periods, indicating shifts in operational efficiency and liquidity management.

Inventory Turnover Ratio:
Historically, the inventory turnover data for DoorDash remains unavailable until December 31, 2022. From that point onward, a progressive increase is observed. The ratio rose from 8.14 at year-end 2022 to a peak of 13.97 in June 2023, before experiencing a slight decline to 11.36 in September 2023, and then partially recovering to 12.89 by the end of 2023. This upward trend suggests an improvement in inventory management efficiency during this period, likely reflecting better product or service inventory control or a shift in business operations with reduced inventory holdings.

Receivables Turnover Ratio:
The receivables turnover demonstrates a general upward trend from 12.16 at September 30, 2020, to a peak of 20.07 in June 2023. This indicates an increasing efficiency in collecting receivables, potentially due to improved credit policies, faster payment cycles, or higher sales volume driving receivables collection. After June 2023, the ratio stabilizes around 16.32 to 19.54, showing consistent collection efficiency, albeit at a slightly moderated rate relative to the peak period.

Payables Turnover Ratio:
The payables turnover ratio exhibits substantial variability over the periods, with high fluctuations. It starts at 34.48 in September 2020, decreases sharply to 17.10 by December 2020, then fluctuates through various levels—peaking at 32.15 in June 2024 and reaching a low of 12.50 in March 2022. The high volatility indicates changes in how quickly the company pays its suppliers, with periods of faster payments and delays. Recent data show an increase to 28.58 in September 2023, implying an acceleration in settling payables, followed by slight decreases in late 2024. The variability may reflect strategic changes in payment practices or cash flow management.

Working Capital Turnover:
This ratio has shown steady growth from 1.92 at September 30, 2020, to a peak of 4.09 at June 30, 2023. The increasing ratios suggest that the company has become more effective in utilizing its working capital to generate revenue. The operational efficiency in deploying working capital has improved, although the ratio stabilizes somewhat afterward, fluctuating around 3.43 to 3.82, indicating a stabilization in working capital utilization.

Summary:
Overall, the ratios reflect a company progressively enhancing its operational efficiency, particularly in receivables management and inventory control, and optimizing working capital deployment. The fluctuations in payables turnover suggest dynamic management of supplier payments, potentially balancing cash flow and supplier relationships. The absence of inventory turnover data until late 2022 indicates minimal or non-existent inventory holdings in earlier periods, aligning with business models focused on digital services rather than physical inventory. Moving forward, these ratios suggest a company actively managing its working capital components to sustain growth and operational efficiency.

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Average number of days

The analysis of DoorDash, Inc. Class A Common Stock activity ratios over the specified periods provides insights into inventory management, receivables collection efficiency, and payables payment practices.

Days of Inventory on Hand (DOH):
Historically, DoorDash reported no available data for inventory days from September 30, 2020, through June 30, 2022. The first recorded DOH was on December 31, 2022, at approximately 44.86 days. This figure decreased significantly to about 27.18 days by March 31, 2023, suggesting improved inventory turnover and potential efficiency gains. The DOH fluctuated slightly thereafter, measuring approximately 26.13 days on June 30, 2023, and increased modestly to around 32.13 days on September 30, 2023, before settling at approximately 28.32 days on December 31, 2023. The trend indicates periodic adjustments possibly aligned with operational requirements or seasonal factors.

Days of Sales Outstanding (DSO):
The DSO for DoorDash shows a relatively stable pattern with some fluctuations. In 2020, DSO ranged from 30.00 days on September 30 to a high of 36.80 days on December 31. In subsequent periods, DSO generally trended downward, reaching a low of approximately 18.19 days on June 30, 2023, indicating a notable improvement in receivables collection efficiency. However, there was a slight increase to about 22.53 days at the end of 2023, with a further rise to 25.39 days in March 2025, suggesting a potential leniency in collection periods or changes in payment terms.

Number of Days of Payables:
DoorDash displayed variability in its payables day count over the analyzed timeline. Early on, the period ranged from approximately 10.58 days on September 30, 2020, rising to 29.19 days by March 31, 2022. Notably, payables days peaked at 29.19 days in March 2022 but generally trended downward afterwards, with the figure dropping to about 11.35 days by June 30, 2024. The recent figures for the end of 2024 show some stabilization around 20 days. The fluctuations reflect the company's evolving cash management policies, possibly balancing early payment incentives against cash flow considerations.

Summary:
Overall, DoorDash's activity ratios indicate an ongoing effort to optimize operational efficiency. The declining trend in DSO points toward stronger receivables management. The DOH, which only became available from December 2022 onward, suggests relatively moderate levels of inventory or related operational metrics, with no earlier data preventing a full longitudinal comparison. The account payables pattern demonstrates a cautious approach to managing short-term liabilities, with periods of lengthening or shortening reflecting strategic financial management practices.

This aggregated analysis underscores a trajectory towards improved operational efficiency and effective cash flow management, consistent with a company adapting to market conditions and internal operational strategies.

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See also:

DoorDash, Inc. Class A Common Stock Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

The analysis of DoorDash, Inc.'s long-term activity ratios reveals insights into the company's efficiency in utilizing its fixed assets and total assets over the periods provided.

Fixed Asset Turnover Ratio Analysis:
The fixed asset turnover ratio indicates how effectively the company uses its fixed assets to generate revenue. During the period from September 30, 2020, to December 31, 2021, there was a marked increase from 5.74 to 6.62, and it peaked at 7.90 on March 31, 2021. This upward trend suggests an improvement in asset utilization efficiency in generating revenue from fixed assets during this span, potentially reflecting strategic investments or operational efficiencies. However, subsequent quarters show a slight decline, with the ratio decreasing from 7.33 on June 30, 2021, to 5.92 by September 30, 2022, and further to 6.14 in December 2022. The absence of data beyond December 2022 precludes further trend analysis, but the observed decline indicates possibly less efficient fixed asset utilization or potential asset base expansion not proportionally matched with revenue growth.

Total Asset Turnover Ratio Analysis:
This ratio measures how well the company utilizes its total assets to generate sales. From September 30, 2020, through September 30, 2023, the ratio exhibits a general upward trend, rising from 0.77 to approximately 0.81, indicating improving efficiency in asset utilization. Starting at 0.77 in September 2020, the ratio fluctuated but demonstrated a consistent upward trajectory reaching 0.81 by September 2023. Notably, from March 31, 2022, onward, the ratio stabilized around 0.80 to 0.83, suggesting sustained efficiency in asset utilization in recent periods. The trend reflects incremental improvements or stabilization in asset productivity over time, possibly driven by operational scale, process optimization, or strategic asset management.

In summary, the company’s fixed asset turnover ratio experienced significant growth early in the analyzed period, followed by a slight reduction, while the total asset turnover ratio displayed consistent improvement and stabilization, indicating overall enhancements in operational efficiency and asset utilization over the assessed periods.

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See also:

DoorDash, Inc. Class A Common Stock Long-term (Investment) Activity Ratios (Quarterly Data)